The crypto market is no stranger to high volatilities where the market changed dramatically in even just a matter of a couple of weeks. But despite all volatilities, Bitcoin has still sustained its reputation for being one of the most performant cryptos. Hence it is natural for people to be concerned about Bitcoin’s performance in 2023.
It has been a short time since Bitcoin became the only crypto to have reached a valuation exceeding the $65,000 mark. However, things have gone downhill since then with the bearish run of the entire crypto market.
This has left many wondering when and will Bitcoin recover. If this is a thought keeping you awake at night, then you are at the right place. This article will give you a better insight into what’s in store for the future of Bitcoin, so make sure you read it till the end.
Recent Developments Associated With Bitcoin (BTC)
There is no denying that Bitcoin, the largest and oldest cryptocurrency, is still the dominant player in the market. The token has survived many ups and downs, but nothing seemed to dampen its resilience. Bitcoin had to deal with numerous crashes over the years, succumbing to the highly volatile nature of the crypto market.
But most recently, Bitcoin made many headlines in 2021 for its unmatched performance. The token finally breached the $60,000 mark, and no other crypto has yet been able to breach that record. In November 2021, the token reached a new all-time value of $68,000, which is unique on many different levels.
Could The Sudden Spike Present A Bullish Influence?
There were many reasons behind this sudden spike but people having extra money was one of the most important reasons. With the onset of the Covid-19 pandemic in 2020, most governments went on to dump a lot of cash to help out people.
This meant people could now afford to invest more in risky investments such as cryptocurrencies, further enhancing the investment flow in the market. Things were going well till November 2021, but that started to change with the onset of December 2021 and January 2022.
But the real blow came on the 24th of February 2022 with Russia’s invasion of Ukraine. This resulted in many adverse implications for the global economy, further impacting the crypto market.
Western sanctions on Russia began to take their toll on the global economy, and soon inflation began to skyrocket in a world dealing with an acute energy shortage. The Feds then decided to increase interest rates to counter inflation, making things even worse, even if temporary. As a result, people began to lose their risk appetite, further reducing investments in risky assets such as cryptocurrencies.
This went on throughout the year, failing many prominent crypto projects. But another storm hit the crypto market with the collapse of FTX in November 2022. This was one of the most devastating impacts on Bitcoin prices, taking them to a new two-year low.
But fortunately, Bitcoin seems to be on a recovery trajectory leaving many wondering if will Bitcoin recover in 2023.
Bitcoin (BTC): Price Movement in 2022
2022 has been a devastating year for Bitcoin, with the token starting on a declining trajectory and a valuation of $46.310. But this price fell to a low of $33,500, remaining between $45,000 and $35,000 between January to March 2022.
By the time it was June, the entire crypto market had begun to suffer with the failure of crypto firms such as Celsius and Three Arrows Capital. Soon Bitcoin’s value fell by 60% between the period of April to June. This was followed by a slight recovery in July, only to fall back between the price range of $22,000 to $19,000 in August.
These prices continued to decline with the worsening state of the global economy and the consequent collapse of FTX in November. As a result, Bitcoin soon fell to a two-year low in November 2022 but did manage to make a certain recovery post that.
As of December 2022, Bitcoin (BTC) yields a valuation of $17,682 with a market cap of $340,100,645,878 and a growing trading volume of $26,075,537,401. There are currently 19,234,312 BTC tokens circulating in the market.
Bitcoin (BTC) Price Prediction: What The Future Could Hold For 2023
Will Bitcoin recover from the crash is the most pressing concern for people in the crypto industry. It is always challenging to determine the future of crypto with so many volatilities in the market. That said, we can always study market trends and reach a feasible conclusion to facilitate informed investment decision-making.
Given the historical data associated with Bitcoin price movement, it is safe to conclude the token coincides with a four-year market cycle. This is divided into four stages: accumulation, uptrend, distributing, and downtrend. The accumulation phase will likely begin in 2023, increasing the chances of Bitcoin’s recovery in 2023.
Most price predictions suggest Bitcoin (BTC) will close in 2022 between the price range of $17,000 to $18,000. Given this data, it is likely that Bitcoin will reach a valuation of at least $33,000 to a maximum of $39,000 in 2023. This highlights that Bitcoin does have a chance of recovering in 2023 and growing even more in the coming years.
Should You Consider Investing In Bitcoin Now?
Regardless of its unique characteristics, every cryptocurrency comes with a specific risk. Given the volatile nature of the market, it is not easy to say if Bitcoin is worth your investment. Besides, you must be mindful of crypto investments’ personal implications.
That said, one must uphold that Bitcoin is the oldest cryptocurrency to exist. Besides that, it has always been the most dominant player in the market, no matter how bad things got. Of course, 2022 could have been better, but many external factors dragged Bitcoin down to this stage.
So will BTC recover? Probably yes. But one must still keep up with the recent developments in the market to make an informed decision. Moreover, all investments are risky, so investors must make informed decisions concerning relevant data.